If the market price is $4 and a perfectly competitive firm is producing 500 units and the marginal cost to produce the 500th unit is $5.13, which of the following is true?
A) The firm is maximizing profit.
B) The firm should increase production to maximize profit.
C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive.
D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative.
D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative.
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The fact that prices for similar goods differ across nations complicates comparisons of real GDP across countries
Indicate whether the statement is true or false
Central planners in command economies
a. generally set production targets for firms. b. always consult consumers on the output of goods they want to consume. c. allow prices to organize the economy's production. d. depend upon the invisible hand to coordinate economic activities.
People are said to have ________ if they use all available information in forming their expectations.
A. unbiased prognostication B. rational expectations C. psychic insight D. insider information
Figure 34-10
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Figure 34-10 shows the effect on the market for disk drives of a(n)
A. quota. B. tariff. C. export subsidy. D. import subsidy. E. export tax.